The Hindu Business Line : Cement imports: `Do away with procedural delays'

Mumbai May 17 The Builders Association of India (BAI), the apex body of builders and engineering construction contractors, wants the Government to do away with "procedural delays" such as clearance from the Bureau of Indian Standards while importing cement.

According to Mr P.R. Mundle, President, BAI, "All procedural problems relating to steel imports were removed through notification in 2003. However, the same has not been done in the case of cement. We appeal to the Central government and the Commerce Minister to direct the Directorate General of Foreign Trade to issue a similar kind of notification as it did with the steel industry four years ago."

"The cement imported has to be actually collected by a BIS official from the manufacturer overseas and brought to India for testing. Thus, it would take a minimum of four months to obtain registration, making the entire process lengthy and cumbersome," he said.

Without the procedural hindrances, contractors and builders would be able to import cement without delay for their projects, and costs would reduce for the infrastructure and housing sectors, said a BAI press release.

Price rise

Expressing concern over rising cement prices, the Government in January abolished the 12.5 per cent customs duty on cement imports and in April scrapped the 16 per cent countervailing duty and 4 per cent special customs duty.

"With the process of consolidation taking place in the Indian cement industry over the last 4-5 years, just three cement groups control 46.6 per cent of the market share in India. Cement prices are thus controlled by them and, starting from January 2006, prices have spiralled from Rs 164 per bag to more than Rs 250 per bag. ," the BAI release said.

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